UK Innovation Districts And Knowledge Quarters - Arup

DEFINING AND RESEARCHINGINNOVATION DISTRICTSThe emergence of innovation districts is a globaltrend, as the knowledge economy becomesincreasingly important for cities and regions. Therise of Innovation Districts in US cities and urbanregions was identified by Bruce Katz and JulieWagner at Brookings.1 They define innovationdistricts as:“ geographic areas where leadingedge anchor institutions andcompanies cluster and connect withstart-ups, business incubators, andaccelerators.”They define “anchor institutions” as researchuniversities and research orientated medicalhospitals with extensive R&D. In the UK, culturalinstitutions, professional and scientific bodies,and research-intensive government functionscan also be defined as anchor institutionsin the context of innovation districts. It is alsoclear that a concentration of a diverse pool ofhighly skilled knowledge workers is a feature ofinnovation districts. In the UK, innovation districtsare found in major cities, whereas in the US theyare also found in mid-sized cities and urbanregions.Katz and Wagner identify three main features ofinnovation districts:-- Economic assets – the firms, institutionsand organisations that create or supportinnovation;-- Physical assets – the buildings spaces,streets and infrastructure which supportcollaboration and innovation (including whatthey describe as “the hyper-caffeinatedspaces” between the buildings); and-- Networking assets – the relationshipsbetween different organisations andpeople that generate, develop and helpcommercialise ideas.They set out five broad recommendations tothose developing innovation districts.The Brookings Recommendations onDeveloping Innovation Districts:1. Build a collaborative leadership network, bringtogether the decision-makers and leaders from theorganisations and sectors to cooperate formally onthe design, delivery, investment and promotion of thedistrict;2. Set a vision for growth based on understandingcompetitive advantage, setting out how institutions canwork together, and re-imagine the physical landscape,buildings and infrastructure;3. Pursue talent and technology, through initiatives toattract, retain and develop talented and skilled people,and by integrating new technologies into the activityand physical infrastructure of the innovation district;4. Promote inclusive growth through neighbourhoodregeneration, increasing labour market participation,and stimulating local entrepreneurship; and5. Ensure access to capital by leveraging public andprivate sector sources of funding to support the growthof innovation districts.The Centre for London RecommendationsThe main UK research on innovation districts has focusedon London.2 The report by Centre for London set out fivemain recommendations for developing innovation districtsin London:1. Local Authorities should understand local innovationassets and build skills for long-term;2. The Mayor of London should adapt the London Planto reflect the importance of innovation districts, andshould develop sectorally and spatially focused inwardinvestment plans aligned with innovation districts;3. Government should allow universities and innovationdistricts to sponsor tier 2 visas;4. Universities and other knowledge producers shoulddevelop their role at the civic level to promoteeconomic growth; and5. Developers should take an active role in place-shapingwith a focus on creating spaces and places thatpromote collaboration and entrepreneurship, and areattractive to skilled people and knowledge-intensivefirms.UK Innovation Districts and Knowledge Quarters7

ECONOMIC TRENDSThe Productivity ChallengeThe UK is facing a major challenge aroundproductivity. This matters because, as PaulKrugman said, ultimately the ability of the UK toimprove living standards and re-invest in growthdepends on making productivity gains.“ Productivity isn’t everything, but in thelong-run it is almost everything. Acountry’s ability to improve its standardof living over time depends almostentirely on its ability to raise its outputper worker”Paul KrugmanNew York TimesWhilst there has been strong job growth inrecent years, productivity growth has beensluggish, particularly outside London. This issuehas been termed the “productivity puzzle” withmany theories about the cause and potentialsolutions.There is a consensus that the UK does notspend enough on Research and Development(R&D) compared to other countries. Somecommentators have argued that this problemis exacerbated by big regional differences inR&D spend, particularly Government spending.The Government has committed to increasingR&D spending from 1.7% to 2.4% of GDP by 2027to match the OECD average. Some economistshave argued that the main problem is not theamount of innovation, but that commercialisationand diffusion of innovation geographically, andthrough the business base, is too slow.“ An alternative way of accountingfor slower productivity growth is thatit arises, not from slower rates ofinnovation, but from slower rates ofdiffusion of innovation”Andy Haldane,Deputy Governor, Bank of England8UK Innovation Districts and Knowledge QuartersThere is a debate about the extent to whichindustrial structure matters. Centre for Citieshave argued that parts of the UK, particularlyoutside London and the South East, donot have enough productive, knowledgeintensive, high export firms (high export firmsare generally more productive). The work ofSherry Coutu and the Scale-Up Institute hashighlighted the importance of creating morefast growth scale-up firms. There is a generalconsensus that significant concentrations ofhighly-skilled, diverse workers help drive moreproductive growth, and this now underpins themethodology for assessing the wider impactsof transport schemes. But others, includingDeputy Governor of the Bank of England, AndyHaldane, have argued that the problem lieswith the UK’s “long tail” of less productive smallfirms which do not spend enough on R&D,technology, premises, export promotion, trainingand management development.Whilst the causes of the productivity crisis arecomplex and subject to debate, what is clearis that innovation districts could provide partof the solution. They can provide a focus forincreases in R&D, they can help accelerate ratesof diffusion and commercialisation of innovation,they can attract and create more fast growth,research intensive, high export, scale-up firms.They can potentially help less productive firmsaccess knowledge, expertise and support.

OXFORD ROAD CORRIDOR MANCHESTER’S INNOVATION DISTRICTOxford Road Corridor is a unique strategic partnership overseeingManchester’s Innovation District. Co-located on the Corridorare two universities, five specialist hospitals, local government,entrepreneurs, global businesses, cultural assets and anEnterprise Zone. The Innovation District is underpinned by worldclass research and has particular specialisms in advancedmaterials and health and life sciences. An ongoing series oftransformational investments by partner institutions, guided bya Strategic Spatial Framework, has created an environment thathas seen exceptional jobs and GVA growth. This pro-activeapproach to place-shaping has supported the developmentof a wider mix of uses and has seen improved public realmand shared spaces; the introduction of ‘Dutch cycle lanes’ andtraffic restrictions; development of new cultural facilities; and theintegration of leading-edge smart city technologies.Targetedbusiness interventions have focused on accelerating innovation,commercialisation and improved health pathways, recognising theimportant role the area will play in supporting the delivery of theGreater Manchester health and social care devolution agenda.Left: Manchester’s Oxford Road CorridorGLASGOW - CLINICAL INNOVATIONThe West End and Waterfront area of Glasgow is an idealenvironment for innovation. It boasts one of the world’s largesthospitals, a top 100 research-intensive university as well as culturalfacilities on the banks of the River Clyde.With the main partners – Glasgow City Council and ScottishEnterprise - and the support of the Scottish and UK Governmentsand the wider business community, Glasgow University isestablishing an Innovation District that will help push Glasgow intothe top rank of global innovative cities.The Clinical Innovation Zone at the Queen Elizabeth UniversityHospital is at the forefront of developments in Precision Medicine.By using cutting-edge molecular technologies, clinicians can tailortreatments to patients individual needs – reducing costs andimproving treatment outcomes across a wide range of conditions.Leading biomedical companies are already making use of the first7T MRI scanner to be integrated within a clinical site in the UK.Left: Centre of Excellence at Glasgow’sQueen Elizabeth University HospitalKNOWLEDGE QUARTER LONDON CROSS THEMATIC COLLABORATIONOne of the main advantages of innovation districts is theircapability of producing new collaborations; particularly crossthematically. In London’s Knowledge Quarter, examples of crossthematic collaborations include: A strategic partnership between the Public Collaboration Labat Central Saint Martins and Camden Council. The lab exploresthe potential for, and value of, strategic collaboration betweendesign education and local government and how designresearch and teaching can contribute to service, policy andsocial innovation in the local government context. Through the Digital Music Lab project, City, University of London’sMachine Learning Group is working with UCL and the BritishLibrary, alongside Queen Mary University, to develop researchmethods and software infrastructure to explore and analyselarge-scale music collections. London Metropolitan Archives worked with the London School ofHygiene and Tropical Medicine on an activity with school childrenabout the spread of infectious diseases.Left: Regent High School students debate the future of knowledgeUK Innovation Districts and Knowledge Quarters9

Increasing productivitythrough inclusive growthThere is increasing interest in the concept ofinclusive growth as a means of driving greaterproductivity. Not everyone has been benefitingfrom, or contributing to, economic growthto their full potential. This has affected livingstandards, creating personal and economiccosts of poverty and holding back economicperformance. Stagnant wage levels, job qualityand security, and low pay are also significantproblems.Work to develop the concept of inclusive growthhas been undertaken at international levelby the OECD, UK thinktanks such as JosephRowntree Foundation and the RSA, the SottishGovernment, and several cities. Whilst inclusivegrowth to some remains a fuzzy concept, itinvolves a rejection of trickle-down theoriesin favour of approaches to stimulating growththat address distributional issues. Piketty’sarguments about increasing inequality and itsimpact emphasise a greater focus on humancapital, innovation and enterprise as drivers ofgrowth. Improving education and skills so thatmore people can contribute to and benefitfrom economic growth to their full potential isan important dimension of an inclusive growthapproach.Further growth is still needed to create andimprove equal access to more and better jobs.Innovation districts can have an important rolein supporting economic growth which will createnew and improved jobs. They can help citiesreplace the jobs that will be made obsolete byautomation and technological change.There is also the opportunity to build on theuniversity-industry collaboration aroundinnovation to strengthen partnerships betweenemployers and universities, helping to addresshigher level skills gaps. These collaborationscould also help change recruitment practices,diversifying talent pipelines.10UK Innovation Districts and Knowledge QuartersAbove: Lab technicians in the Accelerator, Liverpool and Lively debateshaping ideas, growth and places in Queen Elizabeth Olympic Park

The changing geographyof the knowledge economyOur cities have always been hotbeds ofinnovation. It was in Manchester that CharlesStuart Rolls met Henry Royce, where Daltondeveloped atomic theory and Rutherford splitthe atom, and where Kilburn and Williams builtthe first programmable computer. It was in thecentre of Leeds where Le Prince created thefirst moving image, where Michael Marks wentinto business with Thomas Spencer, and whereWilliam Astbury’s breakthroughs in structuralmolecular biology were the precursor to thediscovery of DNA. Liverpool was home to thefirst red brick university and the Liverpool Schoolof Tropical Medicine was the first of its kind inBritain. The city was also home to the world’sfirst public baths and the world’s first overheadrailway. In Glasgow, Adam Smith drew on theexperiences of merchants to develop economictheory, James Watt invented the steam engine,and Kelvin did his pioneering research onthermodynamics and electromagnetism. Plastic,colour dyes and paint were all invented in eastLondon, at the site opposite Queen ElizabethOlympic Park. And it was in the centre of London(in today’s Knowledge Quarter) where thethermionic valve was invented, making modernelectronics possible. Hormones, vitamins andthe structure of DNA were all discovered here;whist the world’s leading thinkers, clinicians andscientists gathered at the library of the BritishMuseum, the Royal College of Physicians andthe Royal Veterinary College.“ To find an innovative economy 20years ago, a worker needed to driveto a secluded research park, work inisolation, and keep ideas secret. Todayproximity is everything. Workers want tobe in urban places that are walkable,bike-able, hyper-caffeinated, wherethey can bump into other workers andshare ideas. Firms also want to beclose to other firms, research labs anduniversities, in collaborative spaces”Bruce Katz and Julie WagnerThe Brookings Institution Anna NielssonBut in the 1970s and 80s the fastest growth ofknowledge-intensive jobs in the UK was insuburban and car-borne areas such as theM4 corridor, the M25, the New Towns, and inthe science parks in Oxford and Cambridge.This trend was driven by proximity to leadinguniversities, defence research establishments,accessibility to the motorway network, “leafy”residential and working environments, andnew business space in science and officeparks. This clustering tended to be focused onspecific industries such as IT or bio-science,in line with Marshall’s theory of clustering andspecialisation. Research and developmenttended to be in closed networks withinfirms or through narrow industry-academiccollaborations.Whilst some of these suburban locations remainhighly competitive, a trend emerged in the 1990s,and has picked up pace recently, of knowledgeintensive jobs coming back into city centres anduniversity districts within cities. Many commentatorspredicted that with electronic communicationspeople would no longer need to meet inperson. In fact, as the economy has becomemore specialised and knowledge-based, firmsincreasingly value the way in which city centresbring high densities of face-to-face contacts,exposure to ideas through formal and informalmeetings, and access (via public transport) toa wide pool of skilled and creative workers.Occupiers and workers are valuing more highlythe vibrancy of cities, particularly as the cultural,residential, retail and leisure offers, and the publicspaces have improved.Above: The Metropolitan Cathedral at the end of Hope Street in LiverpoolUK Innovation Districts and Knowledge Quarters11

Unlike the single-industry specialist clusters ofthe suburban science parks and motorwaycorridors, the clustering of knowledge-drivenfirms and skilled workers in cities has embraceda new trend of interconnected industries andstimulated the growth of city centres and urbanquarters where universities are based. This iswhere different sectors come together, andincreasingly innovation is found at the intersections of different sectors, as well as the resultof an area or areas of world class researchexpertise. It is also based on open innovationand sharing of ideas between different firms,people and institutions.“ People vastly underestimated theimportance of face-to-face contactin work. What globalisation and newtechnologies do is radically increasethe returns to being smart. We are asocial species that gets smarter bybeing around other smart people,and that’s why cities thrive.”Professor Ed Glaeser3Harvard UniversityThe trend has been accelerated andsupported as a result of major capitalinvestments. Universities, hospitals and culturalinstitutions continue to invest in new buildings,facilities and campuses as they modernise theirestates. Significant investment in new transporthubs and connections, as well as publicspaces are opening up new areas for growthand development. Enlightened developers,informed by far-sighted planning policiesand masterplans, are capitalising on theopportunities, creating and curating buildingsand spaces that support collaboration andvibrancy.Industry 4.0Data & DigitalManufacturingFinancial TechnicalDigital HealthMobility as aserviceSMART CITYOF THEFUTUREManufacturingServicesFinancial Professional& Public ServicesInterconnected IndustriesEdge of city technology / science parksInnovation DistrictsInnovation takes place mainly withinfirms, labs, office buildings, and narrow,closed industry-university networksPeople and firms share ideas incollaborative spaces within and betweenbuildings, and through meet-ups and openinnovation networksGenerally focused around aparticular sector or specialismIncreasingly a wide mix of different sectorsand activities, with competitve advantagecoming from spillovers between themLocated on the edge of cities with goodaccess by car to the strategic roadnetwork. Buildings surrounded by carparking.Located in city centres and new urbanquarters with good public transport access,as well as pedestrian and cycle links tonearby areas. Buildings within quality publicrealm.Leafy, green environments,close to countrysideVibrant, with good cafes, restaurants andretail, incorporating or close to city centreliving, and cultural attractions.The growing, productive economiczones of the 1980s and early 90s.The economic powerhouses of the 21stcenturyHow innovation districts differ from edge of city technology parks12UK Innovation Districts and Knowledge Quarters

LEEDS - A WORLD LEADERIN DIGITAL PATHOLOGYLeeds is a globally leading centre for digital pathologyinnovation. It boasts the largest online pathology repository inthe world, and has developed leadership over 15 years onevidence-based safe adoption of digital pathology for clinicaluse. The collaboration between Leeds Teaching Hospitals andthe University of Leeds has created a number of novel spin outtechnologies and applications. Their strategic partnership withLeica Biosystems has led to full digitisation of their pathology laband establishment as the Leica Global Centre of Excellence inDigital Pathology.Digital Pathology provides significant opportunities to applyartificial intelligence and machine learning to increase the speedand consistency of cancer diagnosis. The Leeds InnovationDistrict positions Leeds and collaborators at the forefront of theseopportunities.Left: The digital pathology Powerwall at Leeds Teaching HospitalsLIVERPOOL - CENTRE OF EXCELLENCEIN INFECTIOUS DISEASE RESEARCHHoused in Liverpool’s 24m Life Sciences Incubator, Accelerator,The Centre of Excellence in Infectious Disease Research (CEIDR)was launched in 2017 by the University of Liverpool and theLiverpool School of Tropical Medicine and focuses on translationalpartnering in infectious diseases.CEIDR provides a single point of access for the industry intoa broad infectious disease expertise base in Liverpool fortranslational activity and helps to develop relationships withindustries. It applies the technologies, expertise and resourcesof the University of Liverpool, the Liverpool School of TropicalMedicine, associated NHS Trusts and overseas partners in therapid translation of infectious diseases research, with a primaryfocus to combat the threats of resistance to public health acrossthe globe.Left: Liverpool Life Sciences Accelerator, home to CEIDRQUEEN ELIZABETH OLYMPIC PARK INVESTING IN NETWORK ASSETS - ECHOEcho is a place-based network that stimulates the exchangeof skills, knowledge and opportunities, established in QueenElizabeth Olympic Park and surrounding areas since 2014. Echo’sopen access digital platform (www.economyofhours.com) allowsits members to self organise, build networks of unlikely allies andexchange skills and resources using a currency called Echoes,where everybody and everything is valued equally: 1 Echo for 1hour. This provides a mechanism for local residents, independentbusinesses, freelancers and start-ups, as well as establishedbusinesses to connect and tap into the talent, innovation andentrepreneurial energy in east London.Investment in Echo as a network asset is delivering social andeconomic impact (with 1 in 4 members reporting that they havegained commercial work as a direct result of trading with Echoes,82% learning new skills and 47% starting a new busines

Olympic Park 2 UK Innovation Districts and Knowledge Quarters UK Innovation Districts Group. UK Innovation Districts and Knowledge Quarters 3 Glasgow West End . of choice for spin-out, start-up, and scale-up science and technology driven firms, as well as for larger businesses undertaking research and development. Innovation districts are .